Differences that matter: hiring modes and demographic (dis)similarity in executive selection
Year: 2018
Type: article
Abstract: Scholars, practitioners, and policymakers have long acknowledged the importance of understanding the antecedents of top management team (TMT) composition. Yet, research on how and why firms select executives who are demographically dissimilar to incumbent TMT members remains limited. We take a step toward answering these questions by employing a sample of 575 individual-level executive appointments at 170 large European firms between 2005 and 2009. Drawing on the person-group (P-G) fit perspective, we argue that firms are more likely to appoint socio-demographically dissimilar executives through internal promotion – while external hires are more likely to socio-demographically resemble incumbent top managers. Our results support the hypothesized relationship. They also show that this relationship is influenced by the level of administrative complexity and environmental uncertainty facing the firm. Overall, our theory and results enhance our understanding of why TMTs are composed the way they are, by highlighting the impact of internal and external hiring modes in the selection of demographically (dis)similar executives.
Institutions: University of St.Gallen, University of Reading
Language: English
Subfield: Gender Studies
Field: Social Sciences
Domain: Social Sciences
SDG: Reduced inequalities
Open Access status: green
OpenAlex ID: W2883074982